Question 1

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.

Accepted Answer

A) True 
 B)False

Question 2

A limited warranty includes all of the following scenarios except:

Accepted Answer

A)  coverage of the first buyer. 
B)  the buyer pays for repairs or replacement of the defective product. 
C)  only a portion of the product purchased is covered. 
D)  the manufacturer replaces the defective product at no charge to the buyer. 
A)  coverage of the first buyer. 
B)  the buyer pays for repairs or replacement of the defective product. 
C)  only a portion of the product purchased is covered. 
D)  the manufacturer replaces the defective product at no charge to the buyer.

Question 3

A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

Accepted Answer

A) True 
 B)False

Question 4

All of the following apply to strict tort liability except:

Accepted Answer

A)  strict tort liability is independent of the UCC. 
B)  strict tort liability has abolished privity of contract. 
C)  strict tort liability requires the defect exists at the time of manufacture. 
D)  strict tort liability requires assumption of the risk. 
A)  strict tort liability is independent of the UCC. 
B)  strict tort liability has abolished privity of contract. 
C)  strict tort liability requires the defect exists at the time of manufacture. 
D)  strict tort liability requires assumption of the risk.

Question 5

A defective product can injure intangible economic interests.

Accepted Answer

A) True 
 B)False

Question 6

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

Accepted Answer

A)  the goods cost $500 or more. 
B)  the defects in the goods are obvious to all buyers. 
C)  it is made at the time of the sale. 
D)  it is not conspicuously set forth in a writing. 
A)  the goods cost $500 or more. 
B)  the defects in the goods are obvious to all buyers. 
C)  it is made at the time of the sale. 
D)  it is not conspicuously set forth in a writing.

Question 7

Under the concept of ______, only the original parties to a sales contract could sue each other.

Accepted Answer

A)  exclusivity of contract. 
B)  privity of contract. 
C)  privacy of contract. 
D)  priority of contract. 
A)  exclusivity of contract. 
B)  privity of contract. 
C)  privacy of contract. 
D)  priority of contract.

Question 8

An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.

Accepted Answer

A) True 
 B)False

Question 9

At every sale, the seller makes an implied warranty that:

Accepted Answer

A)  the goods are the finest available. 
B)  the seller's title is good. 
C)  the price is the lowest available. 
D)  the seller is a merchant. 
A)  the goods are the finest available. 
B)  the seller's title is good. 
C)  the price is the lowest available. 
D)  the seller is a merchant.

Question 10

Suppose a Ford truck slams into a parade and the driver claims the brakes failed. All of the following are potentially liable in a defective product suit except:

Accepted Answer

A)  the Ford dealer. 
B)  the Ford manufacturer. 
C)  the manufacturer of the brakes. 
D)  the bystanders 
A)  the Ford dealer. 
B)  the Ford manufacturer. 
C)  the manufacturer of the brakes. 
D)  the bystanders

Question 11

Which of the following statements made by the seller does not likely constitute an express warranty?

Accepted Answer

A)  "This looks beautiful on you." 
B)  "This is 100 percent wool." 
C)  "This motor generates 100 horsepower." 
D)  "This is a 3.2 liter rotary engine." 
A)  "This looks beautiful on you." 
B)  "This is 100 percent wool." 
C)  "This motor generates 100 horsepower." 
D)  "This is a 3.2 liter rotary engine."

Question 12

The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).

Accepted Answer

A) True 
 B)False

Question 13

How do the warranty provisions under the CISG compare to the provisions of the UCC?

Accepted Answer

A)  In most instances, the standards are the same. 
B)  In all instances, the standards are the same. 
C)  The CISG standards are stricter when compared to the UCC standards. 
D)  The standards are completely different. 
A)  In most instances, the standards are the same. 
B)  In all instances, the standards are the same. 
C)  The CISG standards are stricter when compared to the UCC standards. 
D)  The standards are completely different.

Question 14

An inadequate warning label about a product's dangers can be considered a defective product.

Accepted Answer

A) True 
 B)False

Exam 24: Product Liability: Warranties and Torts

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.

A limited warranty includes all of the following scenarios except:

A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

All of the following apply to strict tort liability except:

A defective product can injure intangible economic interests.

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

Under the concept of ______, only the original parties to a sales contract could sue each other.

An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.

At every sale, the seller makes an implied warranty that:

Suppose a Ford truck slams into a parade and the driver claims the brakes failed. All of the following are potentially liable in a defective product suit except:

Which of the following statements made by the seller does not likely constitute an express warranty?

The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).

How do the warranty provisions under the CISG compare to the provisions of the UCC?

An inadequate warning label about a product's dangers can be considered a defective product.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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